The Commissioner Of Income Tax vs M/S. Catapharma (India) Pvt. Ltd

The Supreme Court held that excise duty and sales tax should not be included in the total turnover for computing deductions under Section 80HHC(3)(b) of the Income Tax Act, 1961. The Court emphasized that income tax is levied on profits and gains, not on gross receipts, as defined under Section 2(24) of the Act. The judgment affirmed the Bombay High Court's decision in favor of the assessee, thereby upholding the interpretation that the term 'turnover' excludes these taxes.